Pentagon Reports Billions of Dollars in Contractor Fraud The Pentagon paid hundreds of billions of dollars to defense contractors engaged in criminal or civil fraud -- in some cases paying the companies after they were convicted, according to a new Defense Department report. At least 91 contractors holding contracts worth $270 billion were the subjects of civil fraud judgments -- and in some cases CRIMINAL FRAUD convictions as well, many of which resulted in fines, suspensions or debarments. Even so, Defense Department contracting officers still assigned $4.9 billion worth of work with these companies after the fraud was uncovered, the...